Categorized | General Insurance

Will Indelible Ink Reduce Cash Crowd?

Another masterstroke that came from the Modi led government on Tuesday in its fight against Black Money after its demonetization move is the use of indelible ink to prevent people from making more than one bank transaction from a single bank branch in a day. This inedible ink is much like the one used during elections, the banks have been given operational instructions to differentiate between repeat customers and first time customers for the day.

Economic Affairs Secretary, Shaktikanta Das told the media that Prime Minister Modi held a review meeting with top officials of RBI on the aftermath of the demonetization of INR 1000 and INR 500 notes. The decision to use the indelible ink on the fingers of customers was taken in that meeting. He also asked the public not to panic and don’t get mislead by some false messages floating on various social media platforms. He also reassured people that there is no dearth of cash with the government; it has enough cash to exchange.

This move has been started with a few cities to see how it goes. India being such a massive country by population has huge crowds gathering up at ATMs and bank counters. To control this massive army of customers, the government is taking all possible steps to make the situation for people in the crowds as tolerable as possible. Many businessmen or rich people have instructed their employees or servants to line up in the queue of banks to do the transactions of the former, these employees get early in the lines and other people are left standing in these long lines, thus limiting the number of transactions by the banks per person would give equal opportunity to other people to exchange their old notes.

This practice would also check money laundering as multiple small transactions cannot be done to whiten the black money. Banks have been asked to keep a watch on the people who return to their branches. This is also expected to curb the misuse of the facility. Also, in its efforts to make this trying situation as easy as possible the government has taken steps to enhance the cash availability with banks and post offices to meet the increased demand. In this regard various religious institutions have been asked to deposit all the smaller denomination notes received by them from the donors in their bank branches as soon as possible. This step would help increase the cash availability with the banks. Also, a coordination group, including senior representatives of banks, has been set up to monitor all the steps taken by the government.

The Jan Dhan Yojna (JDY) accounts are under high scrutiny as black money hoarders can use JDV account holders to stack their black money in the latter’s accounts. The government is leaving no stone unturned, special task force teams have been set up to study and investigate all the annulled notes received or collected by various banks and post offices. These teams also study the infusion of fake currencies in the system.